SB 387: Revenue and Taxation; state income tax in its entirety; repeal

Georgia currently collects a state income tax under Chapter 7 of Title 48 of the Official Code of Georgia Annotated, and offers various income tax credits under Chapter 7A. This bill would repeal both chapters entirely. In their place, it adds a short new Chapter 7 that simply states no income taxes may be levied or collected by the state or any local government, and no income tax returns need to be filed, for tax years starting on or after January 1, 2026. The bill would take effect July 1, 2026, but its rules would apply retroactively to tax years beginning January 1, 2026. Tax liabilities, penalties, interest, and refunds tied to earlier tax years would still be handled under the old law, so the change would not erase obligations from before 2026.

• Repeals Chapter 7 of Title 48 of the Official Code of Georgia Annotated, which is Georgia's entire state income tax law.
• Adds a new Chapter 7 stating that no income taxes may be levied or collected by the state or any political subdivision for tax years starting in 2026 or later.
• Eliminates the requirement to file any state income tax return for tax years beginning on or after January 1, 2026.
• Repeals Chapter 7A of Title 48, which contains Georgia's income tax credits, eliminating those credits along with the tax itself.
• Preserves enforcement of tax debts, penalties, interest, and refunds for tax years before 2026 under the old law.

Every individual and business taxpayer in Georgia who currently pays state income tax or claims income tax credits, the Georgia Department of Revenue, which administers income tax collection, and local governments and political subdivisions, which are also barred from levying income taxes under the new language.

If enacted, Georgians and businesses would stop paying state income tax and stop filing state income tax returns starting with the 2026 tax year, ending a major source of state revenue. Existing income tax credits would also disappear, changing tax planning for anyone who currently relies on them.

• Section 1 repeals Chapter 7 of Title 48, the chapter that currently establishes and governs Georgia's state income tax.
• Section 2 replaces it with a new Chapter 7 (O.C.G.A. § 48-7-1) barring any state or local income tax and any income tax filing requirement for tax years starting January 1, 2026 or later.
• Section 3 repeals Chapter 7A of Title 48 in its entirety, eliminating the state's income tax credit programs.
• Section 4 sets the effective date as July 1, 2026, applies the repeal to tax years beginning on or after January 1, 2026, and preserves tax liabilities, penalties, interest, and refund rights for earlier tax years under prior law.
• Section 5 repeals any other laws that conflict with the Act.

1. 2026-01-13Senate Read and Referred (Senate)
2. 2026-01-12Senate Hopper (Senate)

• Colton Moore (R, SD-053)Primary sponsor

• income tax repeal
• state taxes
• tax credits
• Georgia revenue